Family Business Myths Debunked
Numerous myths and misunderstandings exist around the model of family-run businesses. Below, you’ll find information on the most prevalent among them.
Mom & Pop Stores are Dying
They are thriving in the world of e-commerce. Mom and pop stores were indeed suffering before the digital era took hold. The main reason was the long-term rise of national chain stores. Nearly every medium-sized town had at least one big-box store that worked to push smaller merchants into a dead-end. The local sellers either had to cut prices below profitable levels or close their doors. They just couldn’t compete with the giants of the industry. But after e-commerce came along and turned anyone into a potentially formidable force in the cyber consumer market, the mom and pop merchant saw a resurgence in popularity and profitability.
Commercial Fleets are a Big Business Niche
Most vehicle fleets are small, or family owned. In today’s decentralized economy, family-owned vehicle fleets are more common than ever before. Fleet supervisors in these organizations are on the cutting edge of changes in the industry, the primary one being a transition to electric power and away from oil-based combustion cars and trucks. For managers of such fleets, it’s imperative to stay abreast of breakthroughs in electric car range, charger technology, and how to maximize the ROI (return on investment) for every vehicle in a given fleet. Fortunately, couples and their adult children who operate transport firms can review helpful resources to learn more about EV range, price comparisons for the newest commercial chargers, and other pertinent ways in which EV engineering advancements can help them maximize mileage range and overall cost efficiency for all their cars, trucks, buses, vans, and other electric vehicles.
Couple Owned Companies Underperform
They tend to outdo the competition in most industries. Couples who operate their own companies are usually trying to find financial freedom and tend to do so in a more efficient way than traditional startups and small businesses. There are several reasons, most of which are related to co-owners who work well together and don’t have to hash out every small decision. The mom and pop template is actually built on the idea of a couple working together for a common purpose. Most of the duos have a built-in advantage because they agree on a distinct separation of duties from the start.
Fourth-Generation Enterprises are Rare
The old three-generation rule refuses to die, but it doesn’t hold up to scrutiny. The 3-gen rule about mom and pop’s failing was never more than a myth. Now, with more than a century of data, it’s evident that not only was the old rule a total misconception, but families who start companies successfully pass the baton to more than three generations of successive owners. Several of today’s largest and most successful corporations were founded more than four generations ago and are still thriving. It is not a surprising point, considering that in Europe during the Middle Ages, nearly all profit-making enterprises were passed from fathers to sons for hundreds of years. In fact, what are now called surnames resulted from the practice. Hence common last names like Baker, Miller, Black, Cook, and others.
